Foundation Title & Escrow handles numerous duties during the purchase process, the ultimate goal of which is to conduct a real estate settlement where all “defects” in title have been resolved, appropriate legal transfer of property has been accomplished, all appropriate liens against the property have been perfected, and an enforceable title policy protecting the buyer and lender is issued.

What is title insurance and why do I need it?

When you buy a piece of property, you want to know that what you are buying is totally yours. You buy fire insurance to protect you in the event of a fire. You buy flood insurance to protect against a raging flood. But what do you do if someone claims an interest in your property? What do you do if said claim is recognized by a court of law? At best, you take a loss for court fees and lawyer fees. At worst, you lose a part of, or even the entirety of your property due to some past, long-forgotten claim or law. Title insurance protects you from the errors of the past that, like mines, wait half-buried for an unwary person to make the wrong step. By buying title insurance, you can take the right steps and avoid all the hidden snares that may prevent you from totally owning what is, rightfully, yours.

What sets title insurance apart from other insurance types?

Timing is everything. In the case of most other types of property insurance, you are protected against the perils of the future: fires, floods, theft, etc. In the case of title insurance, you are protected from the mistakes of the past, mistakes that could come out of nowhere and bring a lot of trouble with them. We all know that bad things can happen, but we often forget that some of those bad things have already happened and may be lying in wait.

What are the types of title insurance policies?

There are two types: Lender Policy and Homeowner Policy. A Lender Policy protects the mortgage holder specifically against losses brought about by the past. A Homeowner Policy protects the homeowner’s equity in the case of a fault in their ownership or their interest in the property.

What is the cost?

Title insurance requires only a one-time premium to be paid, which is set by state laws and the overall cost of the insured property. It remains in place for as long as you own the property.